Since reaching a high of $4,093, the price of Ethereum has begun to correct its gains. Ethereum is now trading below $4,000 and is displaying bearish signals. However, the price remains above $3,920 and the 100-hourly Simple Moving Average, suggesting that the cryptocurrency still has a solid base to work from.
Furthermore, a key bullish trend line with support at $3,965 was breached on the hourly chart of ETH/USD, as per data from Kraken. Yet, if Ethereum manages to stay above the $3,840 support zone, we could potentially see a fresh increase in its price.
Ethereum’s price managed to stay well above the $3,750 support zone, which allowed it to form a base and begin a fresh increase above $3,920, outperforming Bitcoin. The cryptocurrency’s price was able to break through the $4,000 resistance, reaching the $4,080 resistance zone. A high was recorded at $4,093 before the price began to correct itself.
This correction saw Ethereum’s price fall below the $4,050 and $4,000 levels, dipping beneath the 23.6% Fib retracement level from the $3,680 swing low to the $4,093 high.
On the other hand, Ethereum’s price currently faces challenges near the $3,960 level. The first significant resistance is located near the $3,980 level, with the main resistance forming near $4,000. If Ethereum manages to break through the $4,000 resistance, it could potentially head towards the $4,080 resistance. In fact, if the $4,080 resistance is breached, we could see more gains in the coming sessions, potentially pushing Ethereum towards the $4,150 resistance zone or even $4,220.
However, if Ethereum fails to break through the $4,000 resistance, it could potentially start to decline again. Initial support on the downside is located near the $3,920 level, with the first significant support sitting near the $3,880 zone.
A clear move below the $3,880 support could potentially push the price towards the $3,840 support. Any further losses could potentially send the price towards the $3,770 support level in the near term. The next key support is situated at $3,650.
In terms of technical indicators, the MACD for ETH/USD is losing momentum in the bullish zone and the RSI for ETH/USD is now below the 50 zone. The Major Support Level is at $3,920 and the Major Resistance Level is at $3,980.
In conclusion, while Ethereum’s price has corrected some of its gains, the future trajectory of its price will be determined by whether it can break through key resistance levels and maintain its support levels.
